How to compete against an all cash offer

Don't fixate on one property. You'll wind up overpaying just to "win". There are lots more out there, and most people who follow the local market expect continued price drops.

Don't fixate on one property.

excellent point alan.

Very good advice. I'm also glad to hear that local market prices should continue to drop. Thanks.

Don't fixate on offering money; there are lots of other things you can do to persuade a seller that your offer is better than an all cash offer. For example, you could have someone bash the other would-be buyer in the kneecaps, Nancy Kerrigan style, and tell him that if he knows what's good for him, he'll withdraw his offer. That usually works. Just make sure the police can't tie it back to you.

Finally, some straight talk!! Give it up and move on.

How good looking is your wife?

30yrs - For someone who usually knows all the angles I'm a bit shocked by your comment. What if he's looking in Chelsea?

Are you sure there is even an all cash offer?

"30yrs - For someone who usually knows all the angles I'm a bit shocked by your comment. What if he's looking in Chelsea?"

Then they can offer some of her dresses. there's a joke I could tell, but it's too off color for this board, but for those of you that know it:
"OK, I'll be the wife"
"Good. Now come over here and..."

Family board! family board!

It's a seller decision and every seller is different, but I would think something in the range of 7%+ starts to compensate for the risk of the financing falling through vs. a cash offer, and the cost of waiting the extra two months. If you're buying a co-op, stress also that you should be an easy board approval. Sellers like money, but they like easy too.

ali r.
{downtown broker}

really?

seems to me that if OP is actually serious about this, there are a number of relevant questions.

1. what ballpark are we in? 7% of 600K may not be enough; 7% of $2 million seems way too much
2. how long has property been on the market and what has been seller's experience; if there was a previous deal that fell through or worse yet a board rejection--it may be impossible.
3. how much of a real lock is your deal? are you willing to forgo the financing contingency?

but, finally the real question is from the first responses---why stretch or compete in a market like this? is this place really so perfect for you or priced so well?

All GOLD offer

"OK, I'll be the wife"
"Good. Now come over here and..."

the joke actually goes: " i'll be the husband".
"okay, then get over here and give your WIFE....."

Thanks front porch. 7% seems a good starting off point. It's tough to compete against an all cash offer so my husband and I figured that we needed to offer a little more money to offset the extra waiting time.

Thanks to everyone else for all your good imput.

don't buy it. in spring/early summer, i put three different offers on three different properties, all of which tried to get me into a bidding war with a "cash buyer". we're talking shitholes for 750. if i had that much cash i wouldn't hang my handbags in these places. we stood firm and surprise surprise. of three, two are still on the market. and i'd be willing to bet the sucker that ended up buying the third was not the same cash buyer they were threatening me with.

I'm with csn. How can you be certain there IS an all-cash offer on the table? My instinct would be to offer what you are comfortable with, communicate your impeccable financials, and see what happens.

We came up against something similar last year after making an offer (and this was pre-economic meltdown). Turned out the phantom buyer that the seller's agent kept dangling over our heads either flaked or flat-out never existed in the first place.

We walked for other reasons, but I'm glad we refused to get sucked into a potentially phony bidding war.

If you offered $x and then some cash buyer also offered $x you might as well walk. If there is a premium for non-cash/discount for cash, this person clearly doesn't see it (maybe they love the place, maybe they are morons) and you are unlikely to beat either in this race.

dont "compete" against any buyer--put your bid forward and ignore the complete billshit you hear from any broker--they want a deal--thats all they want--and if the seller wont deal at your best bid the seller's broker will tell you or your broker anything to get you to up your bid

to listen to this crap is like listening to the used car salesman tell you all about the car he wants to sell you--get a mechanic to look the car over, do your research and bid

it's the mother of all buyer's markets--if they try to billshit you move on

raddoc: you are absolutely right. not telling the whole joke must have thrown me off.

Thanks to everyone. We both feel alot better. Our instinct was to offer whatever price we felt comfortable with and stop at the price that we had decided the apartment was worth. Basically to ignore the all cash offer (if it truly exists) and offer our price.

"How to compete against an all cash offer "

flash your boobs.

but what if all cash bidders are bigger and perkier? then on to the schlong contest?

well, them the facts of life. Some people are just more gifted than others, and receive the gifts from that.

loving the totally boring tired 'all gay men must be cross dressers' humor. you may as well start mentioning that we all love popular current icons like liza and judy. yawn